Africa Spent $120 Billion on Refined Petroleum

Why this is here: Cocoa farmers—roughly 5.5 million people, many in Africa—receive only 7% to 10% of the $120 billion to $150 billion annual value of the global cocoa chain.

Anthony Ohemeng-Boamah of the UN Development Programme notes that recent conflict in the Persian Gulf highlights Africa’s vulnerability to global economic shocks. A continent rich in resources repeatedly experiences price increases for essential goods like food and fuel when disruptions occur elsewhere. This isn’t due to a lack of resources, but a pattern of exporting raw materials and reimporting refined products—a “design flaw” costing Africa about $120 billion in refined petroleum imports in 2024 alone.

The issue extends beyond oil to minerals and agriculture, where African producers capture only a small fraction of the final value of their goods. Limited cross-border infrastructure further complicates matters, hindering the movement of goods and keeping markets fragmented.

Initiatives like the Programme for Infrastructure Development in Africa and the African Continental Free Trade Area offer potential solutions, but require coordinated implementation and private sector investment. Achieving these goals will require aligning national plans with regional priorities and establishing predictable regulations.